How the Coronavirus Is Disrupting the Advertising Industry
The global advertising industry is no stranger to disruption and turmoil. Agencies and media companies have endured everything from natural disasters to overthrown governments, but these scenarios rarely spill beyond national borders.
The current outbreak of COVID-19, however, is different. Between widespread travel restrictions and a dense cloud of uncertainty, the global advertising machine is slowing to a crawl in some ways and rapidly pivoting in others.
Some corners of the industry already have been hammered by the spread of the coronavirus that causes COVID-19. Several events have been canceled, and although South by Southwest is moving forward, a number of major brands have pulled out of the festival. Next to suffer will be the advertising production industry—a world ruled by tight deadlines, inflexible budgets and seamless travel—as its schedules are thrown into disarray. And most holding companies are mum, not wanting to spook investors.
On the other hand, TV executives and media agencies are barreling ahead as the TV ad market remains strong, speculating that audiences could grow as consumers stay home.
What’s clear is the large-scale disruption has the potential to transform the industry, forcing brands and agencies to adapt and consider options like letting staff work remotely, using local resources that don’t require international travel and creating virtual events that are more than just lifeless videoconferences.
Could this period of uncertainty mark an inflection point that marketers and advertisers will look back on as a moment of turbulence and transformation? Adweek spoke with leaders about how the virus will affect four key parts of the industry: ad spend, experiential marketing, agencies and production companies.